Korean regulator imposes sanctions on AliExpress for e-commerce violations

SEOUL, July 1 (AJU PRESS) – The Korea Fair Trade Commission (KFTC) has initiated formal proceedings to penalize AliExpress, a subsidiary of Chinese e-commerce giant Alibaba Group, for alleged violations of e-commerce regulations.

According to industry sources, the regulator recently sent a report of its deliberations to AliExpress Korea regarding sanctions related to its improper registration as an online shopping mall operator.

The KFTC claims that although AliExpress Korea registered with the Seoul city government last September, the entity only serves as a proxy and does not actually operate the e-commerce platform.

The Commission considers that the principal operations and management of e-commerce are handled by a foreign headquarters or other entity.

The move is part of a broader investigation into Chinese e-commerce companies that are rapidly expanding their presence in the Korean market.

The KFTC is also investigating Temu for similar allegations. Additional investigations are being conducted in both companies regarding allegations of misleading advertising practices and unfair terms of service related to the processing of personal data.